The Economics of the Google Ad Auction

Thanks to Dan Perach of PPCProz.com and Anthony C. from the Ring of Fire for alerting me to this useful video from Google, explaining how they run the ad auction in a win-win-win fashion:
 

Do you buy it? Dan questions the low weight given to landing page relevance. 

I think they just take all the ads and throw them down a flight of stairs, and see which ones land near the – no, wait, that was my theory of how my professors graded papers in college.

“Forget I said anything. I don’t know what I’m talking about.”

Extra points for the source of that quote…

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